That said, one name we used to play silver short in our fund needs a second look. The stock is Silver Wheaton – SLW.

At the time of our bearish postings on silver, SLW was overbought on a daily basis. We traded SLW aggressively and were rewarded for shorting intraday rallies for the last two weeks.

With Friday and today’s price action, the daily technical metrics of SLW started to improve, that has us taking a closer look at the weekly SLW chart. What we see tells us SLW is not a safe trading short now and it could move higher.

The most bullish aspect of the SLW weekly chart is the simultaneous break-out of its price trend lines and its momentum oscillator trend lines.

We are still bearish on silver, and short a small amount of SLW at the time of this post but we will be reeling it in soon. We have not yet done the technical work, but the silver miners may be diverging from the metal.

SLW – Weekly

Disclaimer: This communication should not be construed as an offer to sell or the solicitation of an offer to buy any security. (Click here for full disclaimer)